>Truth in pensions: Just how big a hole are we in?
Published: Monday, August 23, 2010, 5:41 AM
Star-Ledger Editorial Board
Andrew Mills/The Star-Ledger
https://blog.nj.com/njv_editorial_page/2010/08/truth_in_pensions_just_how_big.html
The first bills Gov. Chris Christie signed after taking office in January enacted state pension reforms, but the system remains underfunded by tens of billions of dollars.
The settlement with the Security and Exchange Commission makes it official: For years, New Jersey had been cooking its books and neglecting to tell investors it was grossly underfunding pension plans.
The SEC calls that securities fraud, because $26 billion worth of bonds, issued between 2001 and 2007, probably were worth less than investors were led to believe.
With a cease-and-desist order, the state is admitting no guilt, of course, and the SEC (thankfully) won’t make matters worse by assessing hefty penalties that would be paid by unsuspecting taxpayers and not the irresponsible public officials who allegedly bamboozled investors.
The action was historic: New Jersey is the first state targeted by the SEC for securities fraud. But with pension funds crumbling everywhere, other states probably will join us in shame. But from this day forward, cross our hearts and hope to die, New Jersey has agreed to tell the truth about its grossly and dangerously undernourished pension funds
https://blog.nj.com/njv_editorial_page/2010/08/truth_in_pensions_just_how_big.html
